![\"BP](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2019\/01\/BP-Clair-Ridge.png\")
BP has put its North Sea oil division up for sale in the biggest show of dismay over the UK government\u2019s tax policies.<\/p>\n
The move will leave the British energy giant without any petrochemicals production in its home market for the first time in decades.<\/p>\n
It told investors it planned to market its assets in the region as part of a major restructuring being overseen by boss Meg O\u2019Neill, who took charge in April.<\/p>\n
She is leading a reorganisation of BP\u2019s business and a pivot back towards fossil fuels after a disastrous foray into renewable energy projects.\u00a0<\/p>\n
Ms O\u2019Neill had previously said the region had \u2018untapped potential\u2019 but operations have become increasingly challenging thanks to windfall taxes and the ban on drilling.\u00a0<\/p>\n
The Energy Secretary Miatta Fahnbulleh said that she was in close contact with BP over the potential sale.\u00a0<\/p>\n
BP has already offloaded its lubricant division Castrol and a host of its less productive gas assets as part of the drive that is targeting $20bn of divestments by the end of this year.<\/p>\n
\u201cThe UK has been our home for more than 100 years and will continue to play an important role in our future,\u201d Ms O\u2019Neill said, adding: \u201cHowever, as we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company.\u201d<\/p>\n
Chris Beauchamp, chief market\u00a0analyst\u00a0at investing and trading platform IG<\/strong>, said: \u201cIt says a lot when BP isn\u2019t prepared to stick around to see if the new government can re-energise the UK\u2019s energy policy. <\/p>\n \u201cClearly, BP thinks it will take too long at a time when the need to exploit new energy fields is pressing, and waiting around for Whitehall to move is not a prudent use of resources.\u201d \u00a0\u00a0<\/p>\n Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce<\/strong>, said: \u201cToday\u2019s announcement from BP should be a defining moment for the new Prime Minister. How many more jobs need to be lost before the UK Government acts?<\/p>\n \u201cThis decision is another stark reminder that confidence in the UK Continental Shelf has been badly shaken after years of policy uncertainty, punitive taxation and mixed messages about the future of the industry.<\/p>\n \u201cThe Prime Minister has spoken about taking a pragmatic approach to the North Sea. He now has an opportunity to turn those words into action.<\/p>\n \u201cThat means delivering on the commitment to replace the Energy Profits Levy with the Oil & Gas Revenue Levy \u2013 which includes a permanent windfall tax mechanism that would apply when prices are high \u2013 well before 2030. It is imperative that we create a stable, long-term fiscal regime and ensure our regulatory system can approve investment at the pace required.<\/p>\n \u201cThe North Sea remains one of the UK\u2019s greatest strategic assets. It underpins our energy security, supports hundreds of thousands of skilled jobs and generates billions for the public finances. But unless investors have confidence that Britain is open for business, more capital, more jobs and more expertise will continue to leave.<\/p>\n \u201cBP\u2019s decision should not be viewed in isolation. It is the latest signal that the UK is at a crossroads. The new Prime Minister has a genuine opportunity to reset the relationship with our offshore energy sector and restore confidence before more investment is lost.<\/p>\n \u201cIndustry is not asking for special treatment. It is asking for certainty, stability and a policy framework that recognises the continued importance of domestic oil and gas while we build the energy system of the future.\u201d<\/p>\n Daily Business Bulletin<\/strong>:\u00a0Subscribe here for our morning bulletin of breaking news<\/em><\/p>\n \t <\/div>\n